This new ownership structure will be accretive to earnings per share (EPS), net asset value (NAV) and return on equity (ROE), and will lower net gearing. According to a press release, the pro forma FY2025 EPS rises by 3.4%, NAV rises by 1.3% and ROE gains 0.1 percentage point (ppt), while net gearing is reduced by 3.3 ppts.
After taking Frasers Hospitality Trust (FHT) private in September last year, Frasers Property (FPL) has announced a transaction to lighten its balance sheet. FHT owned 14 assets, which FPL acquired as part of the privatisation. To unlock capital, of these 14, five will be divested to TCC Group Investments (TCCGI, the major shareholder of FPL); four will undergo asset enhancement initiatives (AEI) as assets with potential; a further four — in Australia, the UK and Germany — will be warehoused for divestment.
One asset, Fraser Suites Singapore, which is part of the Valley Point site, is likely to be earmarked for redevelopment.
